Microsoft rejects Motorola's Xbox 360 settlement

Microsoft has rejected a settlement offer made by Motorola in a battle over Xbox 360 patent infringements.

Motorola Mobility, which is owned by Google, suggested Microsoft paid a royalty of 2.25% on the sale of every Xbox 360 console and $0.50 per copy of Windows using its ActiveSync technology.

Microsoft claims the demands are in excess of market rates, but faces a potential Xbox 360 sales ban if an agreement can't be reached.

"While we welcome any good faith settlement effort, it's hard to apply that label to a demand that Microsoft pay royalties to Google far in excess of market rates, that refuses to license all the Microsoft patents infringed by Motorola, and that is promptly leaked to the press," Microsoft told Reuters.